Monday, 5 September 2016

Brent plans to take bailiff service in house but with a twist or two

The Brent Cabinet will consider taking debt enforcement in-house as out-sourced contracts end. The aim is for the Council to retain the fees generated by each enforcement warrant issued.

The report suggest that a fairly conservative 17.5% collection rate would cover the costs of the service:

Parking would not be incorporate into the scheme at present.

The first twist is that the Council wants to employ its Enforcement Agents outside the usual borough employment terms and conditions which is something local government unions are likely to oppose. The report argues that other Councils, in order to compete with private debt enforcement firms, employ their workers on a low flat base salary, topped up with performance related pay, which is the industry norm. They argue that one one borough, Lewisham, which offered standard conditions on PO3, lost agents to Croydon when it offered performance related pay.The second twist is that the agents may not be directly employed by the Council but by an independent trading entity which will be a pilot for changing terms and onditions for other Coucnil workers:

It is also important to note that there is a strong likelihood that as part of the Council’s
wider commercialisation agenda, an independent trading entity would be created at
some point. If such a structure were created, it would be able to recruit staff on different
terms and conditions than those used by the council, and as such may be an ideal
vehicle for testing a model such as this, especially in light of the fact that there is no
immediate urgency to move the enforcement function in-house. It will also be useful to
consider the timing of this; if staff are initially employed by the council and later
transferred to a separate entity, the situation is considerably more complex than if they
are employed by a trading arm in the first instance.

The report puts forward a number of principles for debt collection:

Principle 1 –
Clear charges and recovery processes

●We will make
debtors aware of the value and nature of debt they owe to the council, and the
potential implications if the debt is not paid

●We expect customers
to contact us as soon as they receive notification if they wish to dispute a
charge or feel unable to pay.

Principle 2 –
Easy and flexible payment

●We will accept a range of
payment methods and frequencies, and will endeavour to ensure that making
payments is easy for customers, aiming where appropriate to prevent arrears
occurring by encouraging payment in advance, or Direct Debit payments.

●We expect customers to
take advantage of the range of payment methods available in order to pay on
time, and to contact us quickly if they need to request additional
flexibility.

Principle 3 –
Early intervention

●Where practical we will
seek to prevent enforcement by notifying customers who fall into debt at an
early stage to ensure they are aware that debt has accrued.

●We expect customers
to respond promptly to any contact we attempt to make with them.

Principle 4 –
Clear communication

●We will use
a range of communication methods to ensure that debtors know how to make
payments, and how to contact us if they are struggling to pay

●We expect customers
to tell us promptly if their contact details change, and to be courteous to our
staff

Principle 5 –
Support for individuals who demonstrate that they can’t pay

● Where an
individual is identified as being in financial difficulty, we will ensure
they are referred both to relevant internal departments and appropriate sources
of independent advice and guidance. In specific circumstances we may consider
setting aside a portion of an individual’s debt in order to prevent
exacerbating severe indebtedness

●We expect
customers to take ownership of their finances, to engage positively with
any support provided, to provide any requested information within the specified
timescale, and to comply with the terms of any agreement made.

Principle 6 – We
will take enforcement action where individuals “Won’t Pay”

●We will use
a variety of debt recovery methods to collect debts from those that can, but
won’t pay, and wherever enforcement becomes necessary, any costs incurred will
be passed on to the debtor.

●We will ensure that
all enforcement action taken is proportionate, and complies with relevant
legislation; but to be fair to those who do pay, and to try to deter wilful
non-payment, we will always seek the maximum penalty where an individual
commits fraud.

The report considers 'vulnerable debtors' who may be:

● Disabled people, including those with learning difficulties - where theirdisability specifically affects their ability to deal with their financial affairs● People suffering from serious illness, including mental health conditions
- where their disability specifically affects their ability to deal with their financia affairs● People who have difficulty communicating in English – translation servic are available for interaction with the Council, but where someone does not have
the support of family members who can speak and read English, they may be
more broadly financially excluded, and may be considered vulnerable in some
cases● People who have difficulty reading and writing – which is likely to prevent
them from being able to read notices or warnings in relation to their debt, and
may have caused broader financial exclusion● People undergoing significant changes in circumstances – such as being
recently bereaved, or having recently lost their job or their home

The report states that vulnerability does not excuse a person paying a debt but the Council will provide support to avoud undue distress.The full report to be discussed on September 13th can be found HERE

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